On the occasion of the Senate Symposium for the 150th Anniversary of Canada s Confederation Senate of Canada

Transcription

1 Notes for a speech by Monique F. Leroux, President of the International Co-operative Alliance, and Chair of the Board of Directors of Investissement Québec On the occasion of the Senate Symposium for the 150th Anniversary of Canada s Confederation Senate of Canada May 26,

2 The need for inclusive leadership and the global influence of Canada in the world Honourable George Furey, Speaker of the Senate, Honourable Senator Serge Joyal, Coordinator of the Senate Symposium on the 150 th Anniversary of Canada s Confederation, Distinguished Senators, Ms. Kim Campbell, first woman to serve as Canada s Prime Minister, Thank you for welcoming me into this circle. It is an honour and a privilege to take part in this Senate Symposium commemorating the 150 th anniversary of Canada s Confederation. I salute this initiative by the Upper House, which honours its institutional mission by enriching the celebration with a precious moment of reflection on the country s evolution. In this regard, I would like to comment on the quality of the documents that have been provided to the participants as background. For every theme proposed, we received well researched and nuanced overviews that highlighted Canada s achievements along with its upcoming challenges. 2

3 This approach epitomized reality: that a country, even one of the most highly admired, is necessarily and fundamentally a work in progress and always open to improvement. I say this advisedly because I have the privilege of seeing Canada through the eyes of my fellow citizens as well as through those of others. As Chair of the Board of Directors of Investissement Québec, I see our businesses making the most of our home-grown talent; I see Quebec and Canada through the lens of assets and challenges. At the International Co-operative Alliance, as well as in the B20, I see the world s impression of Canada. These days, this name, ladies and gentlemen, get people dreaming. As the world closes in upon itself, as tensions flare, as the political discourse gets harder, more than ever before, Canada is seen as a land of opportunity and freedom. In a world that has gone dark, Canada carries the glow of openness. Because of that, we have a responsibility: to set the example in our own house, and to foster hope and rapprochement on the world stage. My comments today on the equality of women and men naturally bring me to talk about inclusive leadership. I will focus on the progress we have made, on the distance we have yet to cover, and on our influence in the world. *** 3

4 An inspiring story An intuitive sense of times gone by will lead many to say that our society s progress has naturally led more women to play a greater role in our country s economic and political life. The truth is not as linear. History is the dance of time. It involves steps forward and steps backwards, moving in the general direction of progress, at least according to the optimists, of which I am one. Thus, for example, it is a little known fact that one of the greatest successes of the economic history of Quebec and the rest of Canada was made possible by dozens of women working behind the scenes. This morning, if you will allow, I would like to take you back in time, because it all started right here, in Ottawa, in the House of Commons. I would like to take you back to April 6, The member for Montréal-Ste-Anne, Michael Quinn, stood to speak. His was an ardent plea in favour of a law against usury. 4

5 I quote from the Debates: We have had cases throughout the country, particularly in the city of Montreal, in which a rate of interest equal almost to 3,000 per cent per annum has been collected. There was one notable case in Montreal within the last few days, in which a man obtained a loan of $150, and was sued for, and was compelled to pay, in interest, the sum of $5,000 for the loan of $150. On the floor, one man was deeply disturbed. He was the French stenographer for the House. His name was Alphonse Desjardins. He transformed his indignation into a mission: to offer affordable credit to his fellow citizens and a democratic lever for economic development to their communities. For three years he corresponded assiduously with the founders of the European cooperative savings and credit movement. On December 6, 1900, in Lévis, he founded the first savings credit union in North America. The Caisse populaire de Lévis is the original bud of the Desjardins Group, today the first financial cooperative group in Canada, with $260 billion in assets, and ranked as the second safest financial institution in the world by Bloomberg. Part of that story played out right here, in this very room. Alphonse Desjardins had the support of then Prime Minister Wilfrid Laurier and Governor General Lord Albert Grey. But the federal Bill for the creation of savings credit unions died here in the Senate, defeated by one vote. So it was that the Government of Quebec under Premier Lomer Gouin who came to be the one that approved the creation of savings credit unions. This explains partly why the cooperative movement is governed by the 5

6 provinces. It also accounts for the extremely modest start of the Desjardins Group. Although Alphonse Desjardins had a vision, connections and knowledge, he had neither the time nor the means to pursue his work. The project would not have gotten off the ground had it not been for his wife, Dorimène. *** Marie-Clara Dorimène Roy-Desjardins was born in Sorel in 1858, into a poor family. She was sent to live with her mother s sister in Lévis, who raised her as her own. She was given the chance to study in the Couvent Notre-Damede-Toutes-Grâces. In her early twenties, she met Alphonse Desjardins, who lived nearby. At the time, he was a reporter with the Quebec daily Le Canadien. Although local notables were appointed to the board of directors of the Caisse populaire de Lévis after its creation, the volunteer function carried neither prestige nor enthusiasm. With no title or salary, Dorimène Desjardins took over effective management of the Caisse during her husband s long absences, essentially running it out of the family home. She had authority to sign all receipts on behalf of the manager, her husband, as well as cheques no larger than $500, and to deposit funds and approve temporary advances to the members. 6

7 She contributed to the development of the caisses by being heavily involved in correspondence and in the transmission of information. When her husband fell ill in 1915, she took part in the effort to federate the caisses into an official Desjardins Group. In 1920, upon the death of her husband, she essentially became the group s conscience, and her counsel was sought on a regular basis. To give you an idea of the authority she wielded, consider these words, which she spoke to a Mr. Laflamme, the President of the Union des caisses Desjardins de Québec: [translation] You talk about the many obstacles you encounter in your work on the continuation and consolidation of the credit unions; I can only hope that they will not stop you mid-way and that, on the contrary, you will stay your course with determination and confidence. That is how Dorimène Desjardins spoke. Upon her death in 1932, the L Action catholique newspaper talked about the loss to French Canada, adding that without her, the Caisses populaires Desjardins likely would not exist. In the mid-70s, Dorimène Desjardins was designated as the co-founder of the Mouvement des caisses Desjardins. In 2012, the Canadian government recognized her as a figure of national historic significance 40 years after her husband. But she was not the only one. Rosario Tremblay, who was the chief inspector of the Fédération des caisses populaires Desjardins from 1924 to 1966, wrote that in 75% of cases, the caisses were carried by women. 7

8 Ladies and gentlemen, I propose to you this morning that you recognize the work of these exceptional women who, like so many other heroes working behind the scenes, contributed to our country s economic and social success. Ladies, you deserve our full recognition! *** My commitment to inclusive leadership is based on the equality of men and women Senators, I was born in Montréal into a family of modest means. My parents had a little shoe store. I benefited fully from everything that our society had to offer youth in those exciting days known in Quebec as the Quiet Revolution. I studied music and public accounting, which for me are two ways of achieving harmony and focusing effort. While studying accounting, I was part of the visible minority, because only 10% of us were women. So I made my way among men. Some of them were great Canadians, taking me under their wing, opening doors to their network, and helping me build my confidence. I am deeply grateful to them for that. Like so many other women, I saw taking shape before me the stairway to professional advancement and its glass ceiling, which gave so many of us a glimpse of the top echelon, but far too seldom, as remains the case today, the chance to reach it. 8

9 Over time, I observed those cultural biases oftentimes unwitting on the part of our organizations which complicate the rise of women to the decision-making circles. But I also witnessed the progress that could be achieved, and the power of the movement for change that could suffuse teams and leaders that believed in equity in decision-making. And that was very inspiring. *** I had the privilege during my career of being elected to the presidency of the Desjardins Group for two four-year terms between 2008 and 2016, which gave me the opportunity to follow, ever so humbly, in the footsteps of Dorimène Desjardins. I was the first woman to be the chair and president of a major financial institution in Canada, and I thank the 50,000 employees and 5,000 elected officers of Desjardins who granted me the privilege of their trust. During that time, as major changes occurred with the eruption of the financial crisis, the Desjardins Group surged ahead. By conviction as much as by nature, I led based on four principles: inclusion, democracy, transparency and rigour. The outcome of these principles was that Desjardins success through those turbulent years drew upon the full measure of all of its talents residing in both its women and men. We reviewed our compensation practices, as well as our hiring, appointment, training and guidance practices for our up-and-coming leaders so that they would be free of any unconscious bias that could thwart the progress of women. 9

10 By experience, I knew that the presence of women in management positions did not happen by itself, not yet, and that it would take concerted action to imprint a movement with parity. Wishing for diversity simply will not do the trick, any more than will wishing for nice weather. It takes strong measures, and firm commitment. In April 2013, at the Desjardins Congress, all of the delegates present voted overwhelmingly (92%) for commitment to achieving a male/female balance on the boards of directors of Desjardins caisses that reflected their membership. It was a clear commitment, one that positioned Desjardins as a leader. This was not the final solution, but the message was out, and it resonated throughout the financial sector and the business community. 1 It is not insignificant that this call to parity was launched by a cooperative organization. The cooperative movement has been a leader worldwide in promoting the equality of men and women. In fact, Canada s cooperative movement has several women among its top executives. The International Cooperative Alliance, which I chair, is fully committed to the UN s initiative. And that is a voice that carries. The cooperative and mutual movement represents a wave of one billion people strong in more than 100 countries, and brings together businesses with combined revenu of $3,000 billion. This means that if cooperation were a country, it would be the world s 10 th major economic power

11 To illustrate leadership in equality in the cooperative movement, I will give you a recent figure provided by the International Cooperative and Mutual Insurance Federation. In 2015, worldwide, 48% of insurance cooperatives and mutuals had at least 3 women on their board of directors, compared to 17% in the industry as a whole. 2 And it is important to point out that such a significant presence by women in decision-making echelons in cooperative and mutual businesses was not at the cost of performance, on the contrary. Cooperatives are the business model with the strongest stride on the world runway. The message needs to get out there. Big business has to commit. The companies listed on the stock market have to make commitments to their shareholders. Public and government institutions have to set the example. Norms spawned from precedent tend to repeat themselves. It is time to create precedents and repeat them. One of my positions is as Chair of the Board of Directors of Investissement Québec, the Government of Quebec s primary lever of economic action. Our Board of Directors has equal representation, as do those of the Government of Quebec s 22 state-owned enterprises. Item 2 of section 43 of the Act respecting the governance of state-owned enterprises is unequivocal: that the boards of directors of the enterprises as a group include an equal number of women and men as of 14 December

12 In 2007, the Government of Quebec formed the first gender-equal council of ministers. Prime Minister Trudeau did the same in For its part, the Government of Ontario has just set targets. It is aiming for at least 40% of women on the boards of directors of government organizations by 2019, and it has told businesses that they have 3 to 5 years to reach at least 30% of women directors on theirs. 4 And if the objectives are not reached, Premier Wynne has stated that the government will legislate. These are actions that matter. More importantly, these are actions that have a ripple and lever effect on enterprises and institutions by the recognition of new talent and by the positive influence on the social, economic, and political ecosystem. *** An issue of justice and prosperity We tend to see the issue of gender parity as a point of justice. That is clearly so. At the strict level of democratic principles, it should go without saying that half of the population exerts half of the influence on the conduct of our businesses and institutions

13 But we are not there. Currently in Canada, according to the Catalyst firm, women hold 37% of middle management positions in businesses, and only 18% of executive positions. We see a strangely similar situation in government. In Québec City as in Ottawa, election after election our parliaments comprise approximately 30% women. At the municipal level, in Quebec, it s the same story. Women account for 30% of municipal elected officials, but only 17.3% of mayors. 5 And then there is that other dimension, which is seldom talked about: the price we pay for this under-participation by women. A woman in Canada will currently bring in $81 for doing a job for which a man will get $100. That s $2 less than the average in OECD countries. According to PWC, closing the gap between women s and men s income would add $92 billion to Canada s GDP. 6 In Canada today, a woman will average 88% of a man s salary for comparable responsibilities. But even more of a loss than those thousands that are not available to irrigate our economy, is the intelligence of which we deprive ourselves, which also has tremendous value. In a study dating back to 2012, the Catalyst firm demonstrated that businesses that had women in senior positions showed better results. Fortune 500 companies with the highest proportion of female board members reported a 53% higher return on equity than the others

14 Once again I come back to my own experience. I can attest to the strength of mixed teams. How often have I seen driven men wish for swift results? How often have I seen prudent women push for longer-term action? The fertility of the mix is real and expressed in the combination of viewpoints. At this point you might say that we start venturing into the territory of stereotypes, but they are not unfounded. A business is a human organization seeking to meet human needs. It will naturally make the best decisions if the process leading it is suffused with gender duality. In that, the equality to which we aspire is not a negation, but a valorization of differences and perspectives. In a series of studies launched 10 years ago around the theme of Women Matter, the McKinsey Global Institute also addressed the connection between the performance of companies and the presence of women in decision-making positions. But the organization added an interesting caveat. The presence of women starts to pay off at a certain threshold: it takes at least 3 women in a management team of 10 to achieve the benefits of the mix. Here, as in most developed countries, the presence of women at the decision-making levels of organizations has not followed the same curve as the presence of women in university faculties. Had that been the case, Canada, like most OECD countries, would be run by women. There is as social component to this disconnect between the curves. Women are less dominant in terms of their numbers in fields of study that are known to produce the greatest number of senior managers, such as MBA and engineering programs. But that s only a small part of the story. 14

15 We have among us here today some extraordinary women. Kim Campbell, the first woman to serve as Canada s Prime Minister. Senator Chantal Petitclerc, one of the top athletes in Canada s history. Senator Joan Fraser, an icon of Canadian journalism. So many women have left their mark on the country s recent history. Julie Payette, Kathleen Wynne, Céline Dion, Heather Munroe-Blum, Louise Arbour, Lynda Hasenfratz, Michaëlle Jean, Huguette Labelle, Beverly McLachlin... In every field, women have blazed the trail to the summit, in so doing, serving as inspiring models for the next generations. But this abundance of models and at times symbolic, at times legislative gestures have not yet been enough to close the gap in compensation or economic/political influence. All that to say, that despite some real progress, there is a wrinkle in the Canadian fabric. Thus, those who favour letting things ride, who believe that the movement towards full equal opportunity will happen by itself, should consider the following: in a recent study entitled Getting to Equal 2017, the Accenture firm found that if we do nothing, if we rely on good feelings, the wage gap between women and men in developed countries will be closed in But the same study finds that if we intervene with young women, namely by encouraging them to master digital technologies that appeal less to them than boys, if we also teach them to manage their careers as life projects, which boys do more intuitively, the gender gap could close within 10 years. *** 15

16 Acting with determination The great Montreal poet, Leonard Cohen wrote: There is a crack in everything, that s how the light gets in. We are at that point where the model is cracking, and the path to full equal opportunity is becoming visible. But the hand of history has to be forced, because it takes too long to write itself. As legislators, you have a part to play. As influencers, you carry weight. Every leader in this country, in every company, has the capacity to change things. At a governmental or institutional level, you have some very tangible options. You can make Crown corporations and agencies reporting to the federal government set clear objectives to achieve gender parity at their decision-making levels. You can also place pressure on market regulation organizations to have them enforce the commitment of companies to gender parity. In the fall of 2014, securities regulators in Manitoba, New Brunswick, Nova Scotia, Nunavut, Ontario, Quebec, Saskatchewan, Newfoundland and Labrador and the Northwest Territories passed regulations to release information about the number of women serving on the boards of listed companies

17 That is a small step, but we are still far from a firm commitment. Government and regulatory institutions play a pivotal role, which they must fulfill. You must not fail in your duty to set the example and exert your influence. Business leaders also have responsibilities. They must realize that the longterm success of their business is in part linked to the presence of women in management teams. The complexity of today s issues needs every available intelligent mind it can muster. Studies have unanimously demonstrated that in order to bring about change, three specific conditions must be met. First, there must be a firm commitment at the highest decision-making level. Greater representation by women in management positions must be driven by the head of the company and its board of directors. Second, there must be a clear plan, with quantifiable objectives set to timelines of three, five or ten years, depending on the company s reality, with accountability to measure progress and make adjustments as needed. Third, a company s human resource policies must all integrate the priority into hiring, funneling of talents, guidance for up-and-coming leaders, and appointments to management positions. In this march to full equality of opportunity, to equality in decision-making circles, women also have responsibilities. They must commit to their careers, and build the confidence that comes more spontaneously to men. 17

18 So each and every one of us has to pull their weight. Women and men. Together. Political leaders at every level, business people, educational institutions, and social and community organizations. We must acknowledge that we will all benefit. Make no mistake, it is a matter of justice. We must realize that it is an economic issue with extremely important consequences. It is also a need given the significance of the challenges that lay ahead of us. We are at a critical juncture in history. We are heading into a morass of fundamental and swift changes that are redrawing our cities, the country and the world under our very eyes. A mission for Canada What better common cause than full equality for men and women? Can we give the world any better example than truly inclusive leadership? Is there any better way to honour our reputation on the international stage than to become a beacon for parity? And why not take this cause onto the international stage? The impact could be epiphanic. 18

19 If in every country around the world, women held positions equivalent to those in the best countries in their region, the global GDP would expand to $12 trillion by And even better, if women played exactly the same role as men, that would be $28 trillion added to the global economy, which is the same at the combined GDPs of China and the US. 8 Imagine the economic boom, not to mention the social impact. Because there is a direct relationship: the economic precariousness of women goes hand in hand with all forms of vulnerability: systemic injustice, violence, and child poverty. It is the knot of the worst social problems. Canada has always been a country of influence in the world. We fought tyranny in the great international conflicts. We split up combatants, imposed peace, and relaxed tensions. We promoted justice, denounced barbarism, and relieved distress. Canada has a great tradition of diplomacy that stretches far beyond its demographic or economic significance. Canada touches the conscience of the world. And that world, currently losing touch with meaning, falling prey to ideological larceny and to isolationism, needs a strong voice for progress, such as Canada s. In the current context, our openness and our generosity set us apart. But we can do more than simply represent justice and openness. We can do more than simply open our arms. We can actively militate for human dignity, and affirm the universal character of women and men equality

20 There is no country better placed than Canada to promote greater equality on the world stage, and to blaze the trail to a better, more peaceful and more prosperous world. There is not one single issue that can better symbolize human progress and faith in the future than generous and committed full participation by women and men in running a country s institutions and businesses. That is the case that a country as deeply admired as Canada could make: that is the mission that Canada could take on for the 150 th anniversary of Confederation: To serve as the world s advocate of equality between men and women. *** 20